UOL rings in 10% rise in third-quarter profit

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http://www.straitstimes.com/premium/...rofit-20141112

UOL rings in 10% rise in third-quarter profit

Published on Nov 12, 2014 1:24 AM

By Jacqueline Woo


DEVELOPER and hotelier UOL Group has turned in a 10 per cent rise in third-quarter profit to $102.6 million, thanks to higher gains from its associated and joint venture companies.

Revenue rose 66 per cent to $433.5 million for the three months ended Sept 30, following the completion of The Esplanade in Tianjin, China.

The increase was also backed by higher contributions from three Singapore developments - Parkroyal on Beach Road, Parkroyal on Pickering and Pan Pacific Serviced Suites Beach Road.

Share of profit from associated firms rose 29 per cent to $30.7 million due largely to United Industrial Corp (UIC). It registered higher gains from Pan Pacific Singapore and the Archipelago and Thomson Three projects, as well as an increased 99.5 per cent interest in unit Singapore Land (SingLand).

In February, UIC made an unconditional voluntary cash offer to buy all the shares it does not already own in SingLand.

Share of profit from joint venture firms jumped 88 per cent to $9.1 million, with contributions from the Archipelago and Thomson Three projects.

Earnings per share for the quarter came in at 13.23 cents, up from the 12.14 cents in the same period last year, while net asset value stood at $9.29 as at Sept 30, from $8.77 as at Dec 31.

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UOL sharpening recurring income play

Q3 earnings up 10%; plan to launch Upper Paya Lebar condo project in Q1 next year; residential land acquisitions will still be selective

By Kalpana Rashiwala

[email protected]@KalpanaBT

12 Nov


UOL Group, which has posted a 10 per cent rise in third-quarter net earnings, will focus more effort on commercial and hospitality assets with recurring income - amid the subdued Singapore residential sector, said its group CEO Gwee Lian Kheng.

The group recently opened its One KM mall along Tanjong Katong Road. Its 210,000-square-foot net lettable area - spread across three storeys and a basement - is 93 per cent let. Tenants include Uniqlo, Esprit, Food Junction, Cold Storage, Popular and Harvey Norman.

The property and hotel group will continue to be selective in residential land acquisitions, Mr Gwee said.
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UOL plans to launch a nearly 800-unit private condo project in the Upper Paya Lebar-Bartley area in Q1 next year.

Gearing increased to 0.35 at end-September this year from 0.28 as at end-December 2013 - due to higher borrowings incurred for land acquisitions.

Besides the Upper Paya Lebar site, near Bartley MRT Station, that the group acquired at S$648 per square foot per plot ratio (psf ppr) at a state tender that closed in January this year, UOL also clinched another 99-year-leasehold Singapore private residential development site, along Prince Charles Crescent, for S$821 psf ppr at a state tender that closed in April.

In August, UOL made its maiden UK acquisition, picking up a freehold site in Bishopsgate, London for £97 million (about S$201.6 million at the time) earmarked for mixed-use development.

For the third quarter ended Sept 30, 2014, UOL's group net earnings climbed to S$102.57 million from S$93.51 million in the same period last year - chiefly due to higher profits from associated and joint-venture companies.

Share of profit from associated companies expanded 29 per cent to S$30.73 million, mainly from United Industrial Corporation (UIC), which benefited from higher contributions from Pan Pacific Singapore hotel and the Archipelago and Thomson Three condo projects, as well as an increased 99.5 per cent stake in UIC subsidiary Singapore Land following a voluntary cash offer. UOL owns about 43 per cent of UIC. Share of profit from joint-venture companies rose 88 per cent to S$9.1 million - mainly from the Archipelago and Thomson Three projects.

UOL's Q3 revenue expanded 66 per cent to S$433.54 million - mainly due to recognition of S$212.2 million of property development revenue upon the completion of a residential, office, retail and hotel project in Tianjin, The Esplanade, during Q3 FY2014. The Tianjin project includes 522 apartments, 97 per cent of which have been sold. UOL has also sold some space in one of the two office towers. The project also has retail space and a hotel.

"Revenue from all other segments registered modest growth with higher contributions mainly from Parkroyal on Beach Road, Parkroyal on Pickering and the Pan Pacific Serviced Suites Beach Road," UOL said.

Earnings per share increased to 13.23 Singapore cents in Q3 FY2014 from 12.14 cents in Q3 FY2013. Net asset value per share rose to S$9.29 as at Sept 30, 2014, from S$8.77 as at Dec 31, 2013. UOL closed at S$6.37 on Tuesday, down seven cents.

The group's results statement also showed that the group had cash and cash equivalents of S$270.71 million as at end-September this year, down from S$333.44 million a year earlier.

In the first nine months, UOL's group net profit fell 27 per cent to S$435.11 million due to higher fair value gains in the same year-ago period. Pre-tax profit before fair value and other gains amounted to S$411.14 million, reflecting an improvement of 29 per cent year on year.

UOL attributed the increase to higher profits from all segments and a S$98.4 million one-time gain from the divestment of land at Jalan Conlay in Kuala Lumpur, lower finance expenses and higher share of profit from associated and joint venture companies.